30 Dec 2008

Russia devalues rouble again

6:46 am on 30 December 2008

The currency is now down 18.6% in value since August due to a slump in the price of oil.

Russia has devalued the rouble again for the the ninth time this month.

The rouble fell on Monday to 41.6 against the euro and to 29.3 against the dollar - the lowest level since 2005.

The currency has lost more than 20% of its value against the dollar - largely due to a slump in the price of oil on which Russia's economy heavily relies.

The BBC reports the Kremlin has been using reserves to try and support the currency. But sharp declines in the price of crude oil means Russia is facing economic challenges.

The devaluation is the twelfth since Russia's central bank began a gradual depreciation of the rouble in November.

The currency previously collapsed in 1998.

Prime Minister Vladimir Putin has ruled out any sharp moves in the rouble.

The currency is now down 18.6% since August. The price of oil, has fallen over 70% in the same period.